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Thirumalai Dasan K   02 December 2022

Full and final settlement of employee

Dear Experts,


I am a Mechanical Engineer. I joined a private limited company ( a group, having businesses in KA,MH, GJ in different names / business entities ) in TN, "P" as an Unit Head - Operations on Jan 2, 2014. Couple of years ago, one unit, say X in KA was closed and the head of the unit was shifted to another unit, in KA, say Y. Another unit, say A in MH merged with another unit (A) in MH. Almost everyone was given 2 months notice and few blue colors were settled in 2019. I was "transferred" to another unit "F" in KA on 1 Sep 2019 and they passed a board resolution authorizing me to take care of unit P (TN) and made me an authorised signatory for many things. 

Now I am taking care of all activities (a-z) and doing business by 100% outsourcing method.  Now the management is planning to sell the company and brand. There are 3 cheque bounce cases, one wrongly mentioned my name as signatory of the cheque, one suit against selling of machinery and one appeal in NCLT. I offered to quit at least 3 times since July 2019 but our MD told me to "Be with Me". Now they may ask me to relocate to KA or give me 3 month notice. In any case I am not willing to relocate to KA. 

In the present scenario, I would request the experts to give their opinion on 

1) If the case (Yr 2019, Sec 138- wrongly inflicted) continues, how can I manage the case till it is disposed of permanently.

2) No settlement was given at Unit P (Gratuity, PF, Leave Salary etc) etc. But all these statutory things are being kept separately. New PF account (Trust). Earned Leaves are accounted for separately. Ex gratia, Gratuity,  Superannuation benefits are shown in CTC (in unit F). Group HR policies says EL to the extent of 112 days can be encashed at the end of the service.   But I have 65 Days left with P and 63 days in F. If I leave from this company 

(a) In this case can I claim 112 days from Unit F? 

(b) Can I claim Gratuity for 9 years.

(c) Ex Gratia as part of CTC not paid from F. When asked about this, HR replied to me that "it will be paid in due course of time". Can I claim this now?

(d) If the company refuse Gratuity (from F), Can I claim all settlement -Gratuity, Leave Salary from P with interest.

Thank you all in advance.


 1 Replies

Sudhir Kumar, Advocate (Advocate)     22 January 2023

gratuity is admissible for service aboiv 5 years.

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